Okay, you’ve made the decision to buy a business.
Okay, you’ve made the decision to buy a business. You have a lender lined up; an attorney is on the ready line and your CPA is standing by; now you just have to complete the due diligence work. It would be convenient to have either your CPA firm; or law firm perform the due diligence work; however, they have quoted hourly rates at $250/hour (or more) with no cap on the number of hours it might require to complete the work. Who knows what the total bill could be…$8,000…$10,000…$12,000?
So you decide the most cost effective approach is to perform the due diligence yourself.
There is just one problem. You’ve never performed due diligence before and questions keep rolling around in your head. “Where do I begin? What information do I ask the Seller to provide? What am I looking for? How do I interpret the information provided by the Seller?”
You could buy a “Self-Help” book on performing due diligence; but since you already have too many items on your acquisition checklist, how are you going to carve out time to read a book? You might purchase a due diligence CD or video; but you just don’t have the time to work your way through an entire course. Of course, neither of these options provide a forum for you to ask questions as you work through the due diligence process. If you find yourself stuck between the proverbial “rock and a hard place”; then we might have the best solution for you… “Do It Yourself Due Diligence” .“Do It Yourself Due Diligence” is designed for entrepreneurs just like you!
- People who are buying a small business; perhaps for the first time, who must perform as much of the work as possible, to save on acquisition costs.
- People who just need a little guidance so they get pointed in the right direction.
People who need someone available for a question or two while they go through the acquisition process.
Our “Do It Yourself Due Diligence” begins with an initial “one on one” session where:
- We will provide you with a step-by-step approach to reviewing the business.
- We will provide you with a detailed checklist of the information you need to request from the Seller.
- We will walk through the checklist together; so you understand why you are requesting the information; and the importance of each item.
- We will explain “Red Flags” to watch for and specific issues to review on the financial statements.
- We will even suggest methods you can use to verify the cash income, or find undisclosed cash expenses.
When you complete the initial “one on one” session; you will no longer feel like you need someone else to perform the due diligence for you.
Why would you want an outside consultant to perform this work, gain the knowledge and learn the business? Then the consultant walks away with all that knowledge when escrow closes? This way, you will have the confidence to perform the due diligence yourself, in the future. After all, you should be the one learning about the business, because you are the one who will be operating it after the escrow closes.
“Do It Yourself Due Diligence” does not end when the “one on one” sessions are completed.
The due diligence process will naturally generate additional questions, for which you will need help; so we will be available for you to ask questions as you are going through the process!
And perhaps the most significant benefit of “Do It Yourself Due Diligence” is you will forever have the checklist, the knowledge and the first-hand experience. This is a significant benefit because even if you do not buy the specific business you began pursuing; you will be able to apply your newly acquired knowledge and experience to the pursuit of your 2nd, 3rd or 4th choice business. And of course BusinessBuyingServices.com will always be available for you in pursuit of those potential acquisitions.